US Issues $639M In Loans For Insurance CO-OPs

Law360, New York (February 21, 2012, 8:10 PM EST) -- Seven nonprofits will get $639 million in loans from the federal government to launch new, not-for-profit health insurance plans known as CO-OPs, the first of $3.8 billion in loans the Centers for Medicare & Medicaid Services hopes to issue under the Patient Protection and Affordable Care Act.

The loans, announced Tuesday, were immediately criticized by House Ways & Means Committee Chairman Dave Camp, R-Mich., as sweetheart deals for unions and community groups, which he described as the Obama administration's “political friends.”

CO-OP stands for “consumer operated...
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